The Guardian and the NYT report on a big business deal. Only one considers the human element.

[Bozita]

First, the Guardian UK's piece:

Warning for Cadbury from the home of Hershey's
• US confectioner has moved thousands of jobs to Mexico in three-year restructuring
• Company's intentions towards Cadbury, a potential bid target, remain unclear

Andrew Clark in Hershey, Pennsylvania
guardian.co.uk, Friday 20 November 2009 19.32 GMT
Article history

A Chocolate Kiss sits on the belt at the Chocolate World factory in Hershey, Pennsylvania. Hershey's has cut 550 jobs in the town. Photograph: Carolyn Kastor/AP

It calls itself the sweetest place in America. But the home town of Hershey's, the chocolate maker, has a lingering hint of bitterness in the air after cost-cutting initiatives that have shifted thousands of manufacturing jobs to factories in Mexico, staffed by workers on lower wages.

The US confectioner, which is considering wading into a takeover battle for Britain's Cadbury, is held in great affection by Americans, who flock to Hershey, tucked in a valley in rural Pennsylvania, to marvel at chocolate-themed street lamps, ride on Hershey rollercoasters and take lessons in the art of chocolate manufacturing at a "laboratory" staffed by white-coated chefs. The firm's goodies, including bite-sized Hershey's Kisses and peanut butter-flavoured Reese's Pieces, have carved a niche in the national diet.

But Hershey has tested local loyalty with a three-year restructuring aimed at saving $190m (£115m) annually, which has caused the loss of 3,000 jobs at factories in Pennsylvania, California and Canada. The shift, which began in 2007, has been described as a "gut-wrenching" decision by company bosses.

Cheap labour

"I really don't know what the rationale is other than cheap labour," says Dennis Bomberger, business manager of the chocolate workers' union in Hershey, known as Local 464. "They want to outsource, build plants in Mexico, shut down American factories and move stuff around."

He offers a warning to British workers at Cadbury who are waiting to see whether Hershey's, Italy's Ferrero or the food empire Kraft will prevail in a struggle for control of their company: "The question I would have is what is Hershey's intention to do with Cadbury? Do they want to outsource those jobs, too?"

Founded in 1894 by a former printer's apprentice, Milton Hershey, the company has enjoyed a reputation as a paternalistic employer. The town of Hershey, which still has three chocolate factories in the area, is named after the company. The chocolate maker's childless founder used his billions to set up the Milton Hershey School for underprivileged children. This school, with 1,800 pupils, is overseen by the Hershey Trust, which holds a controlling stake in the confectioner.

more at: http://www.guardian.co.uk/business/2009/nov/20/hersheys-cadbury-takeover-bid-jobs


And here's how the NYT sees the possible deal:

November 21, 2009
Cadbury Bid Under Study at Hershey

By MICHAEL J. de la MERCED and ANDREW ROSS SORKIN
Hershey, after months of internal debate, is now considering a bid for the British candy maker Cadbury, a move that would challenge Kraft’s existing $16.7 billion hostile offer for the company, according to people briefed on the matter.

Any Hershey offer would need to be at least $17 billion, these people said, and would break from the financial conservatism that has long defined the American chocolate giant. The company has been working with JPMorgan Chase and the Merrill Lynch unit of Bank of America to line up the financing for such an offer.

Kraft has so far emerged as the only suitor for Cadbury, and were it to succeed it would become an international food giant that could threaten Hershey’s expansion prospects. Working in Hershey’s favor is Cadbury’s reluctance to team up with Kraft, which the British company has derided as a low-growth food conglomerate that would stunt its opportunities.

Even before Kraft made its hostile approach in September, Hershey had been considering its options, including a potential merger with Cadbury. The two already share ties: Hershey makes and distributes Cadbury products like Creme Eggs in the United States.

Hershey had long assumed that it could not afford to strike a deal on its own, especially because Kraft had already locked up nine banks to provide a $9.2 billion loan. But with the financing markets having opened up this year, Hershey may become emboldened to take that step.

In the past, Hershey has been restrained in business matters by the Hershey Trust, a 104-year-old charitable organization that oversees the Milton Hershey School, an institution for underprivileged children in Pennsylvania. Because of the trust, which controls about 79 percent of the company’s voting shares, and local opposition, Hershey scuttled a $12.5 billion sale to the Wm. Wrigley Jr. Company in 2002 and has since become more reluctant to make deals.

more at: http://www.nytimes.com/2009/11/21/business/21hershey.html?_r=1&scp=1&sq=hershey%20cadbury&st=cse

[marmar]

1. The New York Times will zealously defend Corporate America's interests....

.... The great "liberal" newspaper has never been interested in anything but preserving the order.

[niyad]

2. can't stand hershey's products, and have not bought any for years.

[Luminous Animal]

6. Most american chocolate candy bars tastes a little like vomit.

I've never like it but I couldn't quite put my finger on what was wrong with it until a friend's 3 year old niece who family was visiting from England asked, "Why does this candy taste like sick?"

[niyad]

3. it is very interesting that only the UK paper focused on the human element.

by the way, hershey already has a stake in cadbury:

Founded in the 1800's, Cadbury has long been a part of England's history with ties to the British monarchy. The first Cadbury shop was established by John Cadbury in Birmingham, England and grew through the hard work and vision of his sons, the Cadbury brothers - Richard and George. Still today, CADBURY DAIRY MILK is the UK's best selling chocolate, achieving its flavor and creaminess using the traditional recipe.

Acquiring the license to manufacture and sell Cadbury products in the United States in 1988, Hershey Foods Corporation has continued that fine artisan quality of chocolate making. Among the brands made in Hazleton, PA are CADBURY DAIRY MILK bar, CADBURY FRUIT & NUT bar, CADBURY, CADBURY Roast Almond bar, CADBURY ROYAL DARK bar and CARAMELLO bar.

http://www.hersheys.com/products/details/cadbury.asp

[marmar]

4. And the Dairy Milk bars in the UK taste a lot better than the ones you get here.....

nt

[niyad]

5. I know--I have friends in Devon who send me chocolates occasionally--the cadbury they send

tastes nothing like what can be bought here.

[SoCalDem]

7. I miss the blue-wrapper nestle's chocloate bars with almonds

so much better than Hersheys..